AFB/PPRC.23/20 AFB/PPRC.23/20 24 September, 2018 Adaptation Fund Board Project and Programme Review Committee Twenty-Third Meeting Bonn, Germany, 9-10 October, 2018 Agenda Item 6 k) PROPOSAL FOR INDONESIA (5) AFB/PPRC.23/20 Background 1. The Operational Policies and Guidelines (OPG) for Parties to Access Resources from the Adaptation Fund (the Fund), adopted by the Adaptation Fund Board (the Board), state in paragraph 45 that regular adaptation project and programme proposals, i.e. those that request funding exceeding US$ 1 million, would undergo either a one-step, or a two-step approval process. In case of the one-step process, the proponent would directly submit a fully-developed project proposal. In the two-step process, the proponent would first submit a brief project concept, which would be reviewed by the Project and Programme Review Committee (PPRC) and would have to receive the endorsement of the Board. In the second step, the fully- developed project/programme document would be reviewed by the PPRC, and would ultimately require the Board’s approval. 2. The Templates approved by the Board (Annex 5 of the OPG, as amended in March 2016) do not include a separate template for project and programme concepts but provide that these are to be submitted using the project and programme proposal template. The section on Adaptation Fund Project Review Criteria states: For regular projects using the two-step approval process, only the first four criteria will be applied when reviewing the 1st step for regular project concept. In addition, the information provided in the 1st step approval process with respect to the review criteria for the regular project concept could be less detailed than the information in the request for approval template submitted at the 2nd step approval process. Furthermore, a final project document is required for regular projects for the 2nd step approval, in addition to the approval template. 3. The first four criteria mentioned above are: (i) Country Eligibility, (ii) Project Eligibility, (iii) Resource Availability, and (iv) Eligibility of NIE/MIE. 4. The fifth criterion, applied when reviewing a fully-developed project document, is: (v) Implementation Arrangements. 5. It is worth noting that at the twenty-second Board meeting, the Environmental and Social Policy (ESP) of the Fund was approved and at the twenty-seventh Board meeting, the Gender Policy (GP) of the Fund was also approved. Consequently, compliance with both the ESP and the GP has been included in the review criteria both for concept documents and fully-developed project documents. The proposal template was revised as well, to include sections requesting demonstration of compliance of the project/programme with the ESP and the GP. 6. At its seventeenth meeting, the Board decided (Decision B.17/7) to approve “Instructions for preparing a request for project or programme funding from the Adaptation Fund”, contained in the Annex to document AFB/PPRC.8/4, which further outlines applicable review criteria for both concepts and fully-developed proposals. The latest version of this document was launched in conjunction with the revision of the Operational Policies and Guidelines in November 2013. AFB/PPRC.23/20 7. Based on the Board Decision B.9/2, the first call for project and programme proposals was issued and an invitation letter to eligible Parties to submit project and programme proposals to the Fund was sent out on April 8, 2010. 8. According to the Board Decision B.12/10, a project or programme proposal needs to be received by the secretariat no less than nine weeks before a Board meeting, in order to be considered by the Board in that meeting. 9. The following project concept document titled “Build and Strengthen Resilience of Coastal Community against Climate Change Impacts by Perempuan Inspirasi Perubahan Pesisir (PINISI) or Women Inspiration for Coastal Change In Bulukumba District” was submitted for Indonesia the Partnership for Governance Reform in Indonesia (Kemitraan), which is a National Implementing Entity of the Adaptation Fund. 10. This is the second submission of the proposal using the two-step submission process. It was first submitted in the thirtieth meeting and the Board decided: (a) Not to endorse the project concept, as supplemented by the clarification response provided by the Partnership for Governance Reform in Indonesia (Kemitraan) to the request made by the technical review; (b) To suggest that Kemitraan reformulate the proposal taking into account the observations in the review sheet annexed to the notification of the Board’s decision, as well as the following issues: (i) The proposal should strengthen project justification in terms of providing more information on the occurring or expected climate change effects in the region; (ii) The proposal should provide a higher level of detail regarding the concrete activities and tangible results that will be delivered and further demonstrate that the activities address the climate change threats described; (iii) The proposal should strengthen the coherence and cohesion of the project components, outcomes and outputs; (iv) The proposal should justify and further explain the sub-grant financing structure; (v) The proposal should include information on the expected beneficiaries of the project; AFB/PPRC.23/20 (vi) The proposal should clarify the overview of environmental and social risks and state the category in which the screening process has classified the project; (c) Not to approve the project formulation grant of US$ 30,000; and (d) To request Kemitraan to transmit the observations under subparagraph (b) above to the Government of Indonesia. Decision B.30/4 11. The current submission was received by the secretariat in time to be considered in the thirty-second Board meeting. The secretariat carried out a technical review of the project proposal, assigned it the diary number IDN/NIE/Coastal/2017/1, and completed a review sheet. 12. In accordance with a request to the secretariat made by the Board in its 10th meeting, the secretariat shared this review sheet with Kemitraan, and offered it the opportunity of providing responses before the review sheet was sent to the PPRC. 13. The secretariat is submitting to the PPRC the summary and, pursuant to decision B.17/15, the final technical review of the project, both prepared by the secretariat, along with the final submission of the proposal in the following section. In accordance with decision B.25.15, the proposal is submitted with changes between the initial submission and the revised version highlighted. AFB/PPRC.23/20 Project Summary Indonesia – Build and Strengthen Resilience of Coastal Community against Climate Change Impacts by Perempuan Inspirasi Perubahan Pesisir (PINISI) or Women Inspiration for Coastal Change In Bulukumba District Implementing Entity: Partnership for Governance Reform in Indonesia (Kemitraan) Project/Programme Execution Cost: 80,203 USD Total Project/Programme Cost: 841,826 USD Implementing Fee: 77,960 USD Financing Requested: 999,989 USD Project Background and Context The coastline of South Sulawesi, a region of East Indonesia, is 1.937 km long with the sea area of 266.877 km2. It witnesses one of the highest levels of sea level rise in the country. One of its districts, Bulukumba, is located in south edge of South Sulawesi. Dominated by fishing, aquaculture and seaweed farming, Bulukumba is affected by tidal wave, hurricanes, erosion and sea tides, which have caused damage to infrastructure and affected economic activities. In the future, the region will further suffer from increased flooding, coastal erosion, sea water intrusion and changes in ecological processes in coastal areas with greater impacts on socio-economic aspects of coastal communities. This project aims to strengthen the resilience to climate change in vulnerable communities in South Sulawesi area. The project objective is to strengthen the gender mainstreaming for climate resilience actions in coastal area in the Bulukumba District by increasing awareness about climate change impacts at the community level, mainstreaming gender and integrating coastal and small islands areas management plans with village development plan, implementing adaptation, mitigation and economic development activities at the community level, and improving policy at the regency level. The proposed project has four components: Component 1: Community engagements and research of vulnerability contexts, capacities and adaptation of coastal communities in face the impacts of climate change (USD 103,677) This component will develop a baseline of risk and vulnerability, increase communities awareness about climate change impacts and develop coastal resource management plans, in 9 targeted villages. Component 2: Integration of coastal and small islands management plan in development plan with gender mainstreaming (USD 141,780) This component seeks to strengthen the capacity of vulnerable communities (women’s groups) to reduce risk and take climate change mitigation actions, and integrate adaptation actions in village development plan. Component 3: Implementation of resilience action of coastal communities with gender mainstreaming at community level (USD 369,543) This component seeks to support implementation of adaptation and risk reduction activities and in particular diversifying livelihoods for women groups in the 9 targeted villages. AFB/PPRC.23/20 Component 4: Improve policy or regulation at regency level about mitigation of climate change impacts and